Depending on the mortgage company ,I am seeing a lot of people getting pre-approved with a 620 credit score. If its lower you could consider the NACA program for more details call me at 901-409-5490.... more
Mrs. Williamson, I have just joined Trulia's Pro Agent program and saw your questions. I service your area directly and would like to follow-up with you. Will you update me on where you are now since posting your May 31st Questions on Trulia?
You have to understand that just because you want it, doesn't mean the seller can deliver it. 6% is the maximum that the seller can pay for the buyer under a FHA loan right now. This is going to change very soon and the seller may only pay up to 3%.
Now, it looks as if you are purchasing in the Memphis city limits and depending on when you are scheduled to close (May or June), you will not need the whole 6% unless you are borderline in credit (you mortgage insurance premium and home owner's insurance are effected by that) because of the time of year when taxes are escrowed (call the low months). County and City taxes are collected at 2 different times. Also, you may want to compare closing attorney/title companies fees. Just because you are asking someone else to pay your fees doesn't mean you don't have a responsibility in overseeing over-spending. That is just a decent thing to do.
Third and lastly - if you were under contract before April 30th for the tax credit, you'd had better check with an attorney before cracking open the contract or rewriting a new one if you are wanting to keep your tax credit. The IRS is very watchful of these things and you may gain $2000 or $3000 to lose $8000. In the South, we call that cutting off your nose to spite your face!... more
This is usually required on a property that HUD is selling. There are certain damages to the house that are being required to have repaired for closing. The estimate for those repairs are added to the purchase price and included in your mortgage. The money for the repairs is held in an escrow account and paid directly to the licensed contractor once the repairs are completed.
You must close first to qualify for the $8000, so you will not be able to use the money prior to closing. You may be able to go FHA, however with shaky credit you may not qualify for the mortgage insurance premium to be financed into your loan (would would have to pay that at closing. In otherwords, your closing cost just went up significantly - and that sounds like a big problem for you.
In some cases, your credit score will increase about 90 days after proof of pay-off. However, with each infraction and depending on how many you have, it may not be enough to raise it up for the minimum you need. If your credit score right now is 500 - you got a long way to go, but if your credit score is 620...you might be close with your proactive measures.
Consult a reputatable loan officer. They are the ones that will be lending you the money and will help you on the right track. You have to play by their rules and a good lender wants to help you. It may not be an easy road and you may not get the tax incentive, but in the long run, it will be worth it for your future's sake.